SPP Disagrees with European Commission's Plan to End Imports of Russian Fuels

Bratislava, May 7 (TASR) - Slovakia's SPP gas utility disagrees with the European Commission’s new plan to end the import of Russian fuels, TASR learnt from SPP's statement on Wednesday. According to the company, the published document lacks sufficient impact analyses and calculations to assess the consequences of the proposed measures to phase out Russian natural gas. These measures, SPP claims, could significantly harm the competitiveness of the European Union’s business sector. “The narrative of ‘we are freeing ourselves from dependence on Russian gas’ doesn’t hold true. By implementing the EU’s proposed ban on Russian gas, we will create an even greater dependency — in this case, on liquefied natural gas (LNG). Unlike pipeline gas, LNG is a globally traded commodity. As a result, we must compete with a wider market to secure supplies, which naturally increases price pressure. This reduces our competitiveness compared to other parts of the world,” stated SPP CEO Vojtech Ferencz. According to SPP, the EU’s new plan could distort the free energy market and seriously threaten the security of energy supplies for certain regions of the continent, including Central and Eastern Europe. SPP also stated that Russian natural gas is the only flexible source currently available to Europe. All other sources, such as Norway, North Africa, and Azerbaijan, are either supplying at their maximum technical capacity or, in the case of LNG, are not time-flexible. “Any binding restrictions on energy sources from Russia must be based on a comprehensive analysis evaluating the economic, legal, security, and technical consequences for member states, so that the proposed measures do not end up harming EU countries or their business sectors more than they hurt Russia,” Ferencz concluded. He added that such fundamental proposals must take into account the diversity of member states, including Slovakia and other countries in Central and Eastern Europe, for whom Russian gas might remain a more advantageous alternative. mf